Ask HN: Bitcoin business unexpectedly taking off, help!

Post by jacalata » Fri, Jan 31, 2014, 5:28 PM UTC

anovikov wrote: post #58

patio11 wrote: post #15

I would strongly consider not running a money transmitter as a side business. If you do not understand that you are running a money transmitter, I will be happy to elaborate. I would also mention, on the assumption you're not aware of it, that you are offering fairly effective money laundering for credit card thieves at below-market rates for that service, and you can expect heavy dedicated adversarial interest. I ra…

How a bitcoin which is anonymous can be laundering? A bitcoin in my understanding is black by default, it is like cash. If i was that guy i'd be happy (of course taking some protective measures as working through tor and having hosting in a 3rd world, but this is something i suggest everyone who does any e-business).

Post by anovikov » Fri, Jan 31, 2014, 5:28 PM UTC

rwhitman wrote: post #34

axefrog wrote: post #22

Earlier quoted context omitted.

How is he a money transmitter? His business is buying a product (Starbucks gift cards) and paying for them with Bitcoin. By your definition, a used car dealership that buys cars from the public and pays for them with cash is also a money transmitter.

Starbucks gift cards are relatively anonymous, can store varying amounts of money without being suspicious and are easily transferred and sold. They are a fantastic vector for transfering dirty cash

Post by gamblor956 » Fri, Jan 31, 2014, 5:32 PM UTC

pemulis wrote: post #30

I just pinged you on Twitter, @jdshutt. I know a lawyer who specializes in tax law and is very interested in cryptocurrencies. If you want to get in touch with her, you can reach me at john.d.shutt@gmail.com and I'll send her e-mail. I'm on board with everyone saying that you need to talk to a lawyer sooner rather than later, and should work with someone who knows the area.

Post by jbigelow76 » Fri, Jan 31, 2014, 5:38 PM UTC

humanrebar wrote: post #32

brd wrote: post #20

Earlier quoted context omitted.

This is exactly why I am horrified by the number of bitcoin companies cropping up. I can only assume many of them have no idea what they are potentially exposing themselves to from a legal perspective.

> I can only assume many of them have no idea what they are potentially exposing themselves to from a legal perspective. Or an ethical perspective even.

Post by dragonwriter » Fri, Jan 31, 2014, 5:39 PM UTC

gamblor956 wrote: post #65

pemulis wrote: post #30

I just pinged you on Twitter, @jdshutt. I know a lawyer who specializes in tax law and is very interested in cryptocurrencies. If you want to get in touch with her, you can reach me at john.d.shutt@gmail.com and I'll send her e-mail. I'm on board with everyone saying that you need to talk to a lawyer sooner rather than later, and should work with someone who knows the area.

Tax law isn't very relevant here; the primary areas of concern are federal money transmission laws and criminal state and federal anti-laundering laws.